Nevada Copper Announces Further Ramp-Up Progress & Closing of Credit Facility Increase
07 January 2021 - 11:54AM
Nevada Copper Corp. (TSX: NCU) (OTC:NEVDF) (“Nevada Copper” or the
“Company’’) is very pleased to announce a steady increase in
performance from the Pumpkin Hollow underground project (the
“Underground Project”).
Performance Highlights
- Mine Hoisting. In
December, the Company hoisted 36,000 tons of ore, an increase of
over 60% from November. During the first week of
January 2021, electrical and instrumentation commissioning of the
main hoist system was completed, allowing the main hoist to operate
at the full production speed of 1,800 ft per minute, with hoisting
rates in January targeted to increase by 200% – 300%.
- Recovery rates. In
December, the average concentrate recovery was 86% including a
number of days that reached above the Company’s target of 90%.
- Lateral
development. Monthly lateral development for December
increased to approximately 1,200 ft, which is an increase of over
37% from November. A significant increase is expected in January
with the main shaft online.
- Geotechnical
Stability. Geotechnical boundaries and properties of the
East North orebody have been verified by the recent underground
drilling and development drifting. As expected, the resulting
geotechnical modeling has confirmed the stability of the East North
ore body.
- Production. The
Company expects to reach steady-state production of approximately
5,000tpd by mid-2021.
Nevada Copper CEO Mike Ciricillo comments, “The
team continues to improve the performance both at the mine and
processing plant, evidenced by the operational metrics for
December. Most importantly, they have done it safely. In addition,
the commissioning of the main hoist system is progressing well,
with the shaft reaching its full production speed further enabling
the ramp-up to our goal of 5,000 tpd of hoisted material. We are
well on our way to show the potential of the Pumpkin Hollow
Underground Project.”
Closing of Credit Facility
Increase
On December 30, 2020, the Company closed the
previously announced amendment to its existing senior credit
facility with KfW IPEX-Bank, which included a US$15M increase in
the loan amount and a deferral of US$26M of planned debt service
until 2023. Also on that date the Company drew down the full US$15M
amount of the increase.
Qualified PersonsThe information and data in
this news release was reviewed by Greg French, C.P.G., and David
Sabourin, P.E, for Nevada Copper, who are non-independent Qualified
Persons within the meaning of NI 43-101.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer
and owner of the Pumpkin Hollow copper project. Located in Nevada,
USA, Pumpkin Hollow has substantial reserves and resources
including copper, gold and silver. Its two fully permitted projects
include the high-grade underground mine and processing facility,
which is now in the production stage, and a large-scale open pit
project, which is advancing towards feasibility status.
NEVADA COPPER CORP.www.nevadacopper.com
Mike Ciricillo, President and CEO
For further information contact:Rich Matthews,
Investor RelationsIntegrous Communicationsrmatthews@integcom.us+1
604 757 7179
Cautionary Language
This news release includes certain statements
and information that constitute forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts are
forward-looking statements. Such forward-looking statements and
forward-looking information specifically include, but are not
limited to, statements that relate to mine development, production
and ramp-up plans and the expected results thereof.
Often, but not always, forward-looking
statements and forward-looking information can be identified by the
use of words such as “plans”, “expects”, “potential”, “is
expected”, “anticipated”, “is targeted”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements or information are subject to known or
unknown risks, uncertainties and other factors which may cause the
actual results and events to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information.
Forward-looking statements or information are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks and uncertainties relating to: the ability of the
Company to complete the ramp-up of the Underground Project within
the expected cost estimates and timeframe; the state of financial
markets; the impact of COVID-19 on the business and operations of
the Company; history of losses; requirements for additional capital
and no assurance can be given regarding the availability thereof;
dilution; adverse events relating to milling operations,
construction, development and ramp-up, including the ability of the
Company to address underground development and process plant
issues; ground conditions; cost overruns relating to development,
construction and ramp-up of the Underground Project; loss of
material properties; interest rates increase; global economy;
limited history of production; future metals price fluctuations;
speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure
of processing and mining equipment to perform as expected; labor
disputes; supply problems; uncertainty of production and cost
estimates; the interpretation of drill results and the estimation
of mineral resources and reserves; changes in project parameters as
plans continue to be refined; possible variations in ore reserves,
grade of mineralization or recovery rates from management’s
expectations and the difference may be material; legal and
regulatory proceedings and community actions; the outcome of
disputes with the Company’s contractors; accidents; title matters;
regulatory approvals and restrictions; increased costs and physical
risks relating to climate change, including extreme weather events,
and new or revised regulations relating to climate change;
permitting and licensing; volatility of the market price of the
Company’s common shares; insurance; competition; hedging
activities; currency fluctuations; loss of key employees; other
risks of the mining industry as well as those risks discussed in
the Company’s Management’s Discussion and Analysis in respect of
the year ended December 31, 2019 and in the section entitled “Risk
Factors” in the Company’s Annual Information Form dated May 15,
2020. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements or information. The forward-looking
information and statements are stated as of the date hereof. The
Company disclaims any intent or obligation to update
forward-looking statements or information except as required by
law.
The Company provides no assurance that
forward-looking statements and information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and information.
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